tax management in nigeria

Stock markets are a central component to the functioning of a capitalist economy. All major economies have national stock markets and many economies have smaller markets as well in order to facilitate trade in small cap stocks, or other specialized securities such as derivatives. Sometimes the performance of a stock market is used in the media as a measure of economic performance, as the market is deemed to be comprised of rational economic actors whose actions are guided by high levels of knowledge. It is important for everybody to understand how stock markets work, and what the benefits and limitations are of using stock markets as a gauge of economic performance.

Page 3: Introduction to the Financial System Page 7: Commercial Banks Page 12: The Share Market and the Corporation Page 15: Corporations Issuing Equity into the Share Market Page 19: Investors in the Share Market Page 24: Short-term Debt Page 28: Medium- to Long-term Debt Page 32: Interest Rate Determination and Forecasting Page 37: The Foreign Exchange Market Page 40: Factors that Influence the Exchange Rate Page 42: Futures Contracts and Forward Rate Agreements Page 47: Options

Such an event caused many problems in the country. The first problem had been that when banks lost tons of money due to the stock market crash, they also lost the life’s savings of so many hard

The Nigerian Capital market was not exempted in this global phenomenon with the market capitalization which was over N13.5trillion in 2007 with market index of over 57,000 to as low as N4.9trillion in 2009 with ASI at 20827.17. Investor lost confidence in the capital which was investors delight before the meltdown as market returns were high compared to money market. The since meltdown, the capital market has not fully recovered as market in not liquid as it used to be. Financial institutions especially the Money Deposit Banks (MDB) in Nigeria who were the highest lenders to fund managers, stock broking houses were badly hit and billions of funds were due to crash in the stock prices and their operations became threaten since the collaterals which were stocks was no longer liquid.

failure since deregulation have raised question about the nature and state of the Nigerian banking

This study is analysis of previous twelve months (May-2012 to Jun-2012) data relating to prices of shares in Bombay Stock Exchange only.

In Nigeria today, a number of banks wanting to merge may run into difficulties, because most Nigeria banks are not quoted on the stock exchange and the assets of some are really bad. The effect of the merger is that merging banks in the country, under the current dispensation may lose their licenses and be issued new ones to reflect the new consolidated outfit. As we go on in the subsequent chapters, further critical look shall be taken on the effect that this development is likely to or will have on the Nigeria banking industry and the economy at large.

response of Nigerian banks to this new trend and examines the extent to which they

Through my lifetime, I have witnessed the ever-changing world of business and the myriad of global and regional, socioeconomic and political changes accompanied with it. This has not only shaped my actual reality, but has also sparked a genuine interest in global affairs and International economics and finance. From events of the 2008 global financial crisis, to more recent events in my home country Nigeria, who is currently in an economic recession, triggered by a drop in oil prices and financial mismanagement, it is a given that the world is a reflection of global interrelations, and with this, I describe economics as the core of world discussion and finance as its driving tool. This is the reason I am determined to devote myself to the cause of developing an expertise in the interaction between politics, international finance and global markets with the hopes of contributing to the building of an accountable and democratic economy both at home front and on an international platform.

The purpose of the report is to primarily analyze the Indian stock broking industry and the various forces which affect the competitive position of firms within the industry. A three-phase analysis is carried out in which the first phase involves detailed research about the history of stock markets in India, the evolution of capital markets over the years during pre-independence era and later stages after independence. Important historical events which had a significant effect on the capital market industry as a whole were analyzed. A comprehensive study on macroeconomic policies which were brought about by the then Indian government in 1991 and their impact on the stock market and stock broking industry is carried out to

The unethical traders are not the only factor to causes the financial crisis. They are playing an important role along with other factors and further encourage the financial crisis to arise. The unethical traders exist in the asymmetric information problems, and their unethical activities cause the asymmetric information problems even worse in the financial market. Once the asymmetric information problems is severe enough in those factors, the financial market collapse. For the 6 main factors of causing the financial crisis are the followings: 1) Asset markets effects on balance sheets; 2) Deterioration in financial institutions’ balance sheets; 3) Banking crisis; 4) Increases in uncertainty; 5) Increases in interest rates; 6) Government fiscal imbalances.

It is against this background, that besides the introduction other parts of the paper are structured as follows. Next to the introduction, the paper takes a look at the structure and development of the Nigerian financial system before explaining the role of the financial system in the Nigerian economy. Next to this is the section that addresses the history of banking reforms in Nigeria and the nature of the reforms. The last part concludes the paper after a critical look at development implications of banking sector reforms.

The second week of October in 2008 was the worst week for stock market during 75 years, Buckley (2011) state that the worst record was the Dow Jones Industrial Averages dropped 22.1%, but it fell 44.3% then. In general, a financial crisis is not an accident; it may take several years and has complex and interlaced causes (Claessens and Kodres, 2014). The 2007-08 global financial crisis is a typical case due to long-term non-intervention policy and loose regulation for financial market from government. Moreover, it involved the complex relationship between government and financial institutions. In order to look at this issue in particular, this essay first goes though the timeline of the 2007-08 financial crisis, particularly in U.S. and

The subprime financial crisis of 2007-2008 was brought on by much more than unethical traders. It consisted of multiple variables: the deterioration in financial institutions’ balance sheets, asset price decline, increase in interest rates, and an increase in market ambiguity. This in turn led to the worsening of the adverse selection and moral hazard situation in the market, which led to a decline in economic activity, bringing forth the banking crisis. After the banking crisis, an unanticipated drop in the price level led to the debt deflation. Thus, the factors causing for the financial crisis are as listed: changes in assets market effects on financial institution’s balance sheets, the banking crisis, an increase in market uncertainty, an increase in interest rates, and government fiscal imbalances, and not only restricted to the unethical traders.

In this essay, we are trying to look at the factors responsible for the global financial crisis in 2008-09 which started in US and later spread across the world. By now, a lot of studies have been done on the global financial crisis of 2008. We explain briefly the role of the financial engineering which leads to combination of various financial securities, the actual risk of which is not clearly assessed and hence leading to the financial crisis. There were also some serious lapses in regulation and failure of the rating agencies in assessing the risks assumed by the financial products which accentuated the crisis.